E-commerce sites operated by China’s Tencent Holdings Ltd and Alibaba Group Holding Ltd have been placed on the United States government’s “notorious markets” list of entities that allegedly sell or facilitate the sale of counterfeit goods, the US Trade Representative’s office said on Thursday.
The list identifies 42 online markets and 35 physical markets that are reported to engage in or facilitate substantial trademark counterfeiting or copyright piracy.
“This includes identifying for the first time AliExpress and the WeChat e-commerce ecosystem, two significant China-based online markets that reportedly facilitate substantial trademark counterfeiting,” the USTR office said in a statement.
China-based online markets Baidu Wangpan, DHGate, Pinduoduo, and Taobao also continue to be part of the list, along with nine physical markets located within China “that are known for the manufacture, distribution, and sale of counterfeit goods,” the USTR office said.
Alibaba said it will continue working with government agencies to address concerns in intellectual property protection across its platforms.
Industry bodies like the American Apparel and Footwear Association and the Motion Picture Association welcomed the release of the report by the USTR.
The USTR office said in a separate report released on Wednesday that the US needs to pursue new strategies and update its domestic trade tools to deal with China’s “state-led, non-market policies and practices”.
The US and China have been engaged in trade tensions for years over issues like tariffs, technology and intellectual property, among others.
The US has said China had failed to make good on some commitments under a so-called “Phase 1” trade agreement signed by the administration of former President Donald Trump.